Module 5 - Types of Economic Systems and Examples | Comprehensive Practice Test| Study Guide Newest Actual Questions & Answers (A+ Guide Solutions.

Module 5 - Types of Economic Systems and Examples | Comprehensive Practice Test| Study Guide Newest Actual Questions & Answers (A+ Guide Solutions. Quiz_________________? Capitalist system - Answers most resources and businesses are privately owned. Quiz_________________? Command Economy - Answers Central planners make the important decisions about what, how and for whom. Quiz_________________? Communism - Answers a political-economic system under which all resources and businesses are publicly owned and economic decisions are made by central authorities. Quiz_________________? Economic system - Answers an organizational structure for addressing what, how, and for whom to produce. Quiz_________________? Free-enterprise system - Answers an economic system based on private (individual or business) ownership of resources and voluntary exchange. Quiz_________________? In Country B, business owners decide what to produce, how much to produce, and who to produce for. The CEO of Tarheelia Audio, one of the leading audio equipment producers in the country, recently decided to increase production levels of the company's newest MP3 player model, and at the same time decrease production levels of their most popular CD player. The reason for the emphasis on MP3 players is that demand for CD players has decreased dramatically as MP3 technology has taken over the market. Simply put, there is more profit to be made in the MP3 market. - Answers Market economy Individuals make economic decisions; decisions made based on demand; profit motivation Quiz_________________? In Country C, people rarely engage in market transactions. For the most part, they do not need to. Families grow their own vegetables and raise their own animals or hunt to get meat. Certain times get tough for people in Country C, like when the winters are particularly cold or animals change their migration patterns. For this reason, it is important that families stock up in "good times" and develop relationships with neighbors with whom they can share or trade. - Answers Traditional economy Economic activities centered around family; resources are determined by environment Quiz_________________? In Country D, business owners make most economic decisions. As long as they abide by fair trade policies, they can decide what to produce, how to produce, and for whom to produce without government intervention. These decisions are made by business owners based on what happens in the market. For example, a computer manufacturer recently developed a new video gaming system, but decided to wait until closer to the holidays to release the system to the public because it believed anticipation among consumers would allow the company to charge a higher price for the system - Answers Mixed economy Business owners make economic decisions, but government can intervene